The SPDR Consumer Staples (XLP) sector includes companies that offer everyday goods and services. As a defensive sector, it is more independent from overall economic performance compared to other sectors.
The index includes beverages (27%), household products (22%), food and staples retailing (19%), food products (19%), tobacco (9%), and personal products (3%).1 The wide variety of companies meets daily consumer needs to generate business, stabilizing demand. XLP companies depend on a functioning supply chain to stock and sell their products.
XLP is market cap-weighted. The weight of any individual stock in the sector depends on the stock’s market capitalization, which is the total value of all outstanding shares. The larger the stock, the greater the effect it has on the whole.
First State Investment Advisors maintains a significant position in XLP stocks Proctor & Gamble (PG), Coca-Cola (KO), PepsiCo (PEP), Walmart (WMT), and Colgate-Palmolive Co (CL). First State also invests in the broad sector ETF for its client portfolios.
The financial planners at First State are adept at navigating investment portfolios. For a free consultation with professional wealth advisors, contact First State Investment Advisors at (918) 492-1361.
Sources
1State Street Global Advisors XLP The Consumer Staples Select Sector SPDR® Fund (ssga.com) (Accessed Jan 27, 2023)
This overview is for informational purposes only and is not a recommendation. It should not be the sole deciding factor in making an investment. Investing is a risk and, as with all risks, a positive return is not guaranteed. Past performance does not indicate future results.